U.S. Crop Insurance Payouts for 2013 at $1.357 Billion

August 1, 2013 06:57 AM
 

via a special arrangement with Informa Economics, Inc.

Histor2012 indemnities near static in latest update from USDA


NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


Indemnities for 2013 crops have reached $1.357 billion under the crop insurance program as of July 29, according to Risk Management Agency (RMA) data. Payouts for 2012 crops remain nearly unchanged from the prior week at a still-record $17.372 billion.

Indemnities grew slightly for corn and some other crops but the biggest shift was a reduction in the pasture and rangeland data where acreage was trimmed and thus payouts actually decreased by $10 million -- $180 million for the week ended July 22 compared to $170 million for the week ended July 29.

As for 2013, the level of net acres insured stands at 193.497 million, down from where 2012 was a year ago – 235.487 million. But payouts under are ahead of where they were a year ago when payouts totaled $695 million.

Within the 2013 data, payouts on wheat are so far the largest at $871 million vs $759 million for 2012 wheat as of July 29.

Here’s a look at how 2012 and 2013 data compare:

Cropas of July 29, 2013

Year

Net Acres Insured
(million)

Premiums Paid
(Billion dollars)

Subsidy
(Billion dollars)

Indemnities
(Billion dollars)

Loss Ratio

Corn

2012

81.444

$4.329

$2.689

$11.814

2.73

2013

48.674

$2.671

$1.599

$0.076

.03

Cotton

2012

11.424

$0.836

$0.554

$1.092

1.31

2013

5.952

$0.442

$0.288

$0.213

.48

Pasture & Rangeland

2012

44.390

$0.153

$0.083

$0.170

1.11

2013

39.593

$0.145

$0.077

$0.047

.33

Peanuts

2012

1.320

$0.088

$0.052

$0.026

.30

2013

0.443

$0.022

$0.013

$0.0002

.01

Rice

2012

2.100

$0.055

$0.038

$0.041

.75

2013

0.994

$0.025

$0.017

$0.023

.91

Sorghum

2012

4.679

$0.214

$0.138

$0.402

1.88

2013

4.111

$0.198

$0.126

$0.018

.09

Soybeans

2012

65.173

$2.350

$1.473

$2.127

.91

2013

36.130

$1.315

$0.801

$0.024

.02

Burley Tobacco

2012

0.082

$0.026

$0.015

$0.036

1.35

2013

0.024

$0.008

$0.004

$0.000

.00

Flue-Cured Tobacco

2012

0.201

$0.039

$0.022

$0.041

1.05

2013

0.091

$0.019

$0.011

$0.000

.00

Wheat

2012

46.525

$1.788

$1.114

$0.759

.42

2013

42.359

$1.742

$1.099

$0.871

.50

TOTAL

2012

279.129

$11.098

$6.968

$17.372

1.57

2013

193.497

$7.566

$4.673

$1.357

.18

As for where those payouts are taking place, RMA released the following 2012 and 2013 indemnity maps reflecting data through July 22:

RMA 080113 1

RMA 080113 2


Comments: The lag in data relative to net acres insured, premiums and premium subsidies reflects the late planting conditions that have marked this growing season. While the July 15 deadline for farmers to report their acreage to RMA has passed, it will take a while for all of the data to be entered into the system so the 2013 acreage level should eventually match or likely exceed the level for 2012 crops. Of note is that the indemnities for 2013 largely reflect wheat and ongoing drought in the Southern Plains in particular.


 

NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


 


 

 

 

 

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